AUD/AED Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver.
Key drivers:
• Rate gap: The Reserve Bank of Australia has recently raised interest rates to counter rising inflation, while the UAE Dirham remains stable due to its peg to the US dollar.
• Risk/commodities: Global oil prices have fluctuated, impacting demand for Australian exports and, consequently, the AUD's strength.
• One macro factor: A drop in Australian consumer confidence suggests caution ahead, which could limit the AUD's potential gains.
Range:
The AUD/AED is likely to hold within its recent range, with some chances of slight movement toward the extremes.
What could change it:
• Upside risk: A rebound in consumer confidence could increase demand for the AUD.
• Downside risk: Continued global market caution could further pressure the Australian dollar.
